By Paul A. Harris
Portland, Ore., May 1 – Del Monte Foods Inc. priced a $500 million issue of 11 7/8% five-year senior secured notes (Caa2/CCC+) at 97 to yield 12.704% on Friday, according to a market source.
Initial talk had the notes coming with a 12% coupon and with 3 points to 5 points of original issue discount.
The Walnut Creek, Calif.-based food producer and distributor plans to use the proceeds, together with $150 million cash investment from parent Del Monte Pacific Ltd. and a draw on the ABL facility, to refinance its capital structure.
| Issuer: | Del Monte Foods Inc.
|
| Amount: | $500 million
|
| Maturity: | May 15, 2025
|
| Securities: | Senior secured notes
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 11 7/8%
|
| Price: | 97
|
| Yield: | 12.704%
|
| Call protection: | Two years
|
| Trade date: | May 1
|
| Settlement date: | May 15
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
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